We’re delighted to see dispute resolution extend its reach and offer another alternative to the courts.
Against the backdrop of the seemingly never-ending circus of Brexit negotiations, this week The Times published some welcome good news. Two new schemes are set to help small businesses (those with a turnover up to £10 million) resolve their disputes with lenders.
Between them the schemes cover 99% of small businesses and will allow firms to bring complaints about their treatment by banks. One, run by the Financial Ombudsman Service, will consider cases brought by businesses with a turnover of up to £6.5 million.
The other, for businesses with a turnover between £6.5 and £10 million, is a dispute resolution scheme and can award compensation of up to £600,000.
Both schemes help small businesses resolve their disputes and settle their cases without the unnecessary time, cost and stress going to court usually entails. Indeed, many small businesses do not ever pursue their claim as their limited resources mean a court process is prohibitive. So, these schemes mean small firms now have real cause for optimism if they are involved in a dispute with their bank.
Dispute resolution offers firms a less costly, less risky and far less stressful way to reach a settlement and avoid the court process altogether. Moot has relevant and recent experience acting for small business owners in these types of negotiations. If you’re going down this route and would like to find out more about how we can help you, we’d welcome your call.
You can read the full article here
